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The proposed power tariff hike will sound the death knell for the power-intensive ferro-alloys industry in Andhra Pradesh and the industry just cannot take it anymore, according to Sridhar Prabhu, an industry representative who was speaking at a public hearing conducted by the AP Electricity Regulatory Commission (APERC) here on Thursday.
APERC Chairman A. Raghuottama Rao presided over the hearing marred by protests by different political parties and other agitators. The police rounded up agitators who tried to storm the podium.
Sridhar Prabhu said the State was known for its ferro-alloy units and “most of them are on the brink of closure as the power tariff is already high. We cannot absorb any more hike. It will be the last straw on the camel’s back. So please treat us as a separate category and spare us, as power is our most critical input.”
He said he had no objection to the State Government's supply of free power to the agricultural sector, but the burden of cross-subsidy should not be passed onto the industry, especially HT users. He said no fresh investments were coming into the sector and even the existing units would have to wind up operations. “It is a life and death struggle for ferro-alloy units and the lakhs of employees dependent on them. We are providing so much employment and revenue of Rs 750 crore to the discoms in the State. Please spare us,” he pleaded.
B.S.S Narayana, representing Synergy Castings, a 100 per cent export-oriented unit manufacturing aluminium alloy wheels here, said the Andhra Pradesh Eastern Power Distribution Company Ltd (APEPDCL) here was proposing a 35 per cent hike in power tariff for the coming year, which was highly unrealistic. “In fact, at times, during the last year we paid as much as Rs 26 per unit inclusive of penalties. The penalties were imposed for overdrawing power during the peak hours from 6 p.m. to 10 p.m. How can a process industry like ours stop production during those hours and how can we meet our export commitments in such a situation?" he asked.
Several others representing the agricultural sector, domestic consumers and the trade spoke against the hike. Earlier, the CMD of the APEPDCL presented the power tariff hike proposals.
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